The stock market is significant from both the industry’s point of view as well as the investor’s point of view. To learn more about share marketing, you may visit the Share Brokers in Chennai.
This article is intended to highlight the do’s and don’ts for stock market investments.
Firstly, let’s begin with what you must not do.
- Don’t panic
The market is volatile and it will keep fluctuating. So if the prices of your shares drop you need not get rid of them in a hurry.
Stay invested if nothing fundamental about the company has changed.
- Don’t make huge investments
In a scenario, where there is a dip in the market, go ahead and buy some stocks. But avoid investing huge amount.
Keep some money aside and zero in a few companies you believe in.
When the market dips, again and again, keep buying the shares periodically.
Everyone is aware that they should buy when the market has reached its lowest & sell the shares when the market touches the peak.
- Don’t chase performance
Once investors start selling the stock, the price will drop drastically. Hence a stock does not become a good buy just because its price has been increasing phenomenally.
- Don’t Ignore expenses
When you buy or sell shares, you’ll have to pay some amount as a brokerage fee and a securities transaction tax.
This might nip into your profits especially if you are selling your shares for small gains.
Those are some truly admitting points, right? If you need any guidance in making the correct decision in share market, you may approach the Share Brokers in Chennai.
Next, let us have a look at what you must do.
- Get rid of the junk
Is there any share you bought but no longer want to keep it? If they are showing a profit, you may consider selling them.
Even if they are not going to give you enough profit, it is still wise to dump them and utilize the money elsewhere if you no longer believe them.
- Diversify
Ensure that you are invested in stocks of different sectors instead of buying in one sector.
- Believe in your investment
Invest only in those stocks you truly believe in. Analyze the company and then decide if you want to be a part of it.
Never ever invest in shares based on a tip, no matter who gives it to you.
- Stick to your strategy
If you decided you want only 65% of all your investment in share, don’t over-exceed that limit because the stock market has been delivering great returns.
Hope you enjoyed reading this.